Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: In a high-level discussion held today at the Ministry of Agriculture and Livestock Development in Singha Durbar, Agriculture Minister Ramnath Adhikari urged Nepal Rastra Bank (NRB) to simplify the process of providing agriculture loans, making it more accessible for smallholder farmers across the country.
Minister Adhikari emphasized that to alleviate poverty through agriculture, it is crucial that banking and financial institutions (BFIs) play a proactive role in ensuring farmers can easily access credit without excessive bureaucratic hurdles.
“There are reports that large-scale agricultural loans are being diverted to non-agricultural sectors,” said Minister Adhikari. “If this trend continues, our national goals and expectations for agricultural transformation will not be met.”
He also called for strict monitoring mechanisms to ensure that agricultural credit is used for its intended purpose. “We must prevent situations where genuine farmers are denied loans while others misuse them,” he added, calling on government-owned banks to increase their focus on agriculture and fully comply with NRB’s agricultural lending directives.
Responding to these concerns, NRB Governor Dr. Bishwanath Poudel acknowledged that the current utilization of agricultural loans is not delivering expected results, noting that mere disbursement of loans does not guarantee agricultural transformation.
“To make agriculture productive, we must first turn farmers into agripreneurs,” Governor Poudel stated. He highlighted recent field visits to various districts, where he encountered repeated complaints that real farmers are denied loans while those with the right paperwork but no agricultural background secure credit easily.
“Instead of just loading farmers with debt, the entire ecosystem—including regulatory bodies, ministries, and banks—must play an active role in guiding them toward commercial success,” Governor Poudel stressed.
The meeting comes at a critical juncture as NRB prepares to unveil the Monetary Policy for the upcoming fiscal year, where agricultural credit reform is expected to be a focal point. Both sides agreed that loan monitoring, policy enforcement, and genuine farmer inclusion must be central to future strategies.
The discussion also included Dr. Govinda Prasad Sharma and Dr. Deepak Kumar Kharal, Secretaries at the Ministry, Dr. Ram Nandan Tiwari, Director General of the Department of Livestock Services, Roshan Adhikari, Senior Crop Protection Officer and personal secretary to the minister, and Sharan Kumar Adhikari, Director at Nepal Rastra Bank.
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